diff --git a/lib/ansible/modules/cloud/vmware/vcenter_folder.py b/lib/ansible/modules/cloud/vmware/vcenter_folder.py
index 717539b05b..be898c11a2 100644
--- a/lib/ansible/modules/cloud/vmware/vcenter_folder.py
+++ b/lib/ansible/modules/cloud/vmware/vcenter_folder.py
@@ -129,7 +129,7 @@ result:
 
 try:
     from pyVmomi import vim
-except ImportError as e:
+except ImportError as import_err:
     pass
 
 from ansible.module_utils.basic import AnsibleModule
@@ -145,11 +145,16 @@ class VmwareFolderManager(PyVmomi):
         if self.datacenter_obj is None:
             self.module.fail_json(msg="Failed to find datacenter %s" % datacenter_name)
 
+        self.datacenter_folder_type = {
+            'vm': self.datacenter_obj.vmFolder,
+            'host': self.datacenter_obj.hostFolder,
+            'datastore': self.datacenter_obj.datastoreFolder,
+            'network': self.datacenter_obj.networkFolder,
+        }
+
     def ensure(self):
         """
-        Function to manage internal state management
-        Returns:
-
+        Manage internal state management
         """
         state = self.module.params.get('state')
         folder_type = self.module.params.get('folder_type')
@@ -157,26 +162,40 @@ class VmwareFolderManager(PyVmomi):
         parent_folder = self.module.params.get('parent_folder', None)
         results = dict(changed=False, result=dict())
         if state == 'present':
+            # Check if the folder already exists
+            p_folder_obj = None
+            if parent_folder:
+                p_folder_obj = self.get_folder(folder_name=parent_folder,
+                                               folder_type=folder_type)
+
+                if not p_folder_obj:
+                    self.module.fail_json(msg="Parent folder %s does not exist" % parent_folder)
+
+                # Check if folder exists under parent folder
+                child_folder_obj = self.get_folder(folder_name=folder_name,
+                                                   folder_type=folder_type,
+                                                   parent_folder=p_folder_obj)
+                if child_folder_obj:
+                    results['result'] = "Folder %s already exists under" \
+                                        " parent folder %s" % (folder_name, parent_folder)
+                    self.module.exit_json(**results)
+            else:
+                folder_obj = self.get_folder(folder_name=folder_name,
+                                             folder_type=folder_type)
+
+                if folder_obj:
+                    results['result'] = "Folder %s already exists" % folder_name
+                    self.module.exit_json(**results)
+
             # Create a new folder
             try:
-                if parent_folder:
-                    folder = self.get_folder_by_name(folder_name=parent_folder)
-                    if folder and not self.get_folder_by_name(folder_name=folder_name, parent_folder=folder):
-                        folder.CreateFolder(folder_name)
-                        results['changed'] = True
-                        results['result'] = "Folder '%s' of type '%s' created under %s" \
-                                            " successfully." % (folder_name, folder_type, parent_folder)
-                    elif folder is None:
-                        self.module.fail_json(msg="Failed to find the parent folder %s"
-                                                  " for folder %s" % (parent_folder, folder_name))
-                else:
-                    datacenter_folder_type = {
-                        'vm': self.datacenter_obj.vmFolder,
-                        'host': self.datacenter_obj.hostFolder,
-                        'datastore': self.datacenter_obj.datastoreFolder,
-                        'network': self.datacenter_obj.networkFolder,
-                    }
-                    datacenter_folder_type[folder_type].CreateFolder(folder_name)
+                if parent_folder and p_folder_obj:
+                    p_folder_obj.CreateFolder(folder_name)
+                    results['changed'] = True
+                    results['result'] = "Folder '%s' of type '%s' created under %s" \
+                                        " successfully." % (folder_name, folder_type, parent_folder)
+                elif not parent_folder and not p_folder_obj:
+                    self.datacenter_folder_type[folder_type].CreateFolder(folder_name)
                     results['changed'] = True
                     results['result'] = "Folder '%s' of type '%s' created successfully" % (folder_name, folder_type)
             except vim.fault.DuplicateName as duplicate_name:
@@ -195,7 +214,7 @@ class VmwareFolderManager(PyVmomi):
                                           " exception : %s " % to_native(general_exc))
             self.module.exit_json(**results)
         elif state == 'absent':
-            folder_obj = self.get_folder_by_name(folder_name=folder_name)
+            folder_obj = self.get_folder(folder_name=folder_name, folder_type=folder_type)
             if folder_obj:
                 try:
                     task = folder_obj.UnregisterAndDestroy()
@@ -205,21 +224,22 @@ class VmwareFolderManager(PyVmomi):
                                               " modified folder before this operation : %s" % to_native(concurrent_access.msg))
                 except vim.fault.InvalidState as invalid_state:
                     self.module.fail_json(msg="Failed to remove folder as folder is in"
-                                              " invalid state" % to_native(invalid_state.msg))
-                except Exception as e:
+                                              " invalid state : %s" % to_native(invalid_state.msg))
+                except Exception as gen_exec:
                     self.module.fail_json(msg="Failed to remove folder due to generic"
-                                              " exception %s " % to_native(e))
+                                              " exception %s " % to_native(gen_exec))
             self.module.exit_json(**results)
 
-    def get_folder_by_name(self, folder_name, parent_folder=None):
+    def get_folder(self, folder_name, folder_type, parent_folder=None):
         """
-        Function to get managed object of folder by name
+        Get managed object of folder by name
         Returns: Managed object of folder by name
 
         """
         folder_objs = get_all_objs(self.content, [vim.Folder], parent_folder)
         for folder in folder_objs:
-            if folder.name == folder_name:
+            if folder.name == folder_name and \
+               self.datacenter_folder_type[folder_type].childType == folder.childType:
                 return folder
 
         return None